Why California has Hit Bottom

California’s median price for an existing single-family house rose for the third straight month, a sign that the state’s battered real-estate market may be bottoming out.

California’s real-estate market, the nation’s largest, is seen as a barometer of the U.S. economy. Housing prices soared during the boom, and their plummet during the market’s collapse resulted in massive foreclosures and fueled the recession. Economists say the state’s housing market will lag behind the nation’s in recovering, so any indication of improvement in California bodes well for the rest of the U.S.

MP: Unit sales increasing in CA + Median home prices increasing in CA + Median number of days to sell a home decreasing in CA + Unsold inventory index (4.2 months) falling to less than 50% compared to a year ago (8.7 months) in CA + Fewer foreclosed properties among those being sold in CA = REAL ESTATE MARKET IN RECOVERY

Source: economist blog